The federal government has officially handed over operational control of Pakistan International Airlines Corporation Limited (PIACL) to the buyer consortium led by Arif Habib Corporation Limited, following the successful completion of the national carrier’s first financial closing under privatisation.
This transfer represents a significant achievement in the government’s broader economic reform strategy, which has been expedited due to pressure from international lenders to divest loss-making state-owned enterprises.
The Privatisation Commission confirmed that all conditions outlined in the Share Purchase Agreement, signed on January 29, 2026, were met within an exceptionally short period, ensuring uninterrupted airline operations and passenger services throughout the process.
As part of the agreement, the winning consortium paid Rs10 billion (approximately $36 million) directly to the government and injected Rs80 billion (around $288 million) in fresh capital into the struggling airline. This capital infusion is intended to stabilize PIA’s financial position, modernize and expand its aging fleet, and improve operational efficiency.
Looking ahead, the consortium plans to invest an additional Rs45 billion into PIACL by next year before the second financial closing. It has also formally expressed its intention to purchase the government’s remaining 25 percent stake in the airline for another Rs45 billion.
Prime Minister’s Adviser on Privatisation Muhammad Ali highlighted that this privatisation underscores Pakistan’s capability to conduct complex transactions through a transparent, competitive, and professionally managed process. He added that the move is expected to enhance confidence among both domestic and international investors.
The Privatisation Commission acknowledged the contributions of the federal cabinet, regulatory bodies, and financial advisors Ernst & Young (EY) Consulting Dubai for facilitating the swift completion of the deal.
Subsequently, Fauji Fertiliser Company (FFC) and the AKD Group officially joined the consortium led by Arif Habib Corporation Limited. This group initially acquired a 75 percent stake in the national carrier for Rs135 billion on December 23, 2025. On April 28, 2026, the consortium completed the acquisition by purchasing the remaining 25 percent shareholding from the government.
